Property Rescue Blog

House sales are in a slump and prices are falling.  So say the latest reports on house price trends throughout the country.

The key reason appears to be the disparity between the number of buyers and the number of sellers.  The credit crunch has made lenders reluctant to say ‘yes’ to those with poor credit histories or those that want 100% or near 100% mortgages.  This is understandable because in a falling market 100% mortgage today could mean negative equity tomorrow.  But that leaves sellers in a poor position.  With more houses on the market than there are potential buyers to snap them up, the only way to ensure a quick sale seems to be to slash the asking price.

Even the traditional stronghold of London has seen a reduction in prices with a 0.3% drop in the six months up to February this year.  Other areas have been harder hit; Wales, for example, has seen a 3.5% fall.  Some say that the reduction in property value is long overdue and is nothing more than a reaction to the over-inflated prices that we’ve seen over the past few years.  Whether or not you believe this argument is somewhat academic; if you have a house that won’t sell you’re likely to be more keen on resolving the problem than on understanding the reasons behind it.

To reduce the asking price might seem the obvious answer, but in itself this raises further questions: how much should you reduce it by; will the reduction ensure a sale; will the sale go through; will the buyer simply push the price down further at a later stage when it’s difficult for you to back out?  If you don’t need to sell your home quickly then you might decide the best thing is to sit it out and wait for a buyer to come along, or drop out of the current market altogether and try marketing your home at a later date when, we all hope, property prices are more stable and the buying public more confident.

Not everyone, however, has that luxury.  In some cases the property sale is imperative if financial or family difficulties are to be avoided.  In situations like this, consider asking Property Rescue to value your home.  The best thing about their offer is that it is guaranteed.  From the time you accept it, you can have confidence that the sale will go through.  You won’t be let down at the last minute, nor will the price alter from the original valuation.  This is a guaranteed way to sell your home fast and although you probably won’t achieve the same value as you might on the open market, you will have a confirmed sale at a date that suits you and avoid paying costly extras such as estate agents’ fees.

You can find out more by calling Property Rescue in complete confidence.  One of their advisers will be pleased to explain the process to you.  The valuation is completely free and at no stage will you be put under any pressure to proceed.

In the simplest terms, BMV is an abbreviation for Below Market Value property. What this means is that the prospective buyers pay less than the expected market value for a property. There is a section of the housing market that specialises in this area and they usually offer a sell and rent back option (at market rent) to the seller, often with a fixed term lease.  

Companies specialising in BMV property usually offer a minimum of 80% below expected retail value. Valuations are normally free and are estimated by examining the local market trends.

There are a number of reasons that people decide to sell their property at below market value. BMV sales are generally paid in cash and offer an expedient sale. Currently, the general turnaround for a house sale in the UK is 7 months and BMV sales can be completed in 24 hours. Also, companies that specialise in this area tend to deal with all aspects of the sale, including dealing with the mortgage lenders.

The rent and sale option is often utilised by people in financial difficulty, as a way of consolidating debt. The main reason for this being that it offers them the security of their own home whilst repairing their financial situation. Repossession orders have increased year on year as Britain attempts to deal with the spiralling cost of living. The advantage of a BMV sale is that it can stop a repossession order and, probably more importantly in the current credit climate, prevents the seller from acquiring a bad credit rating. The CML has recently highlighted that lenders are finding the credit crunch severely limits their members ability to advance the money for a mortgage. A bad credit rating in the current climate may prevent home buyers from achieving a reasonable interest rate.

In simple terms, Sell and Rent back (or Rent and Sale) is when you sell your house and then rent it back at a rental price affordable to you. Typically the reasons people choose to sell and rent back are for equity release, debt consolidation or motivated selling. In most cases, sell and rent back schemes will have a buy back option for the tenant, at the rate of the new mortgage.

The ability to sell your house and rent it back is a viable alternative to equity release schemes, especially if there is a need to generate cash quickly. There may be a case where you are looking to start a new business and need immediate funds as start up capital

The economic slowdown has forced many homeowners into defaulting on their mortgage and has put them at risk of repossession. IVA’s have increased year on year and debt consolidation companies has become an ever present part of the UK’s economic landscape. The advantage of selling and renting your house back, is that you are guaranteed a quick sale and the security of a roof over your head whilst attempting to deal with your financial situation.

For example, if you were looking to sell your property and emigrate overseas, an expedient sale not only releases the required funds, it also gives you the option to rent back for a certain period whilst searching for your new home. The same applies if you are looking to start a new business overseas, also providing a certain amount of flexibility if you decide eventually that you would like to emigrate as well.

Sell and Rent Back in London has been steadily increasing due to its position as the focal point of the economic market. Comparatively speaking, house prices and the cost of living have grown exponentially in London. Debt management is now of growing concern to people in the capital.

The vast majority of Sell and Rent Back companies are based online. The advent of the Internet and World Wide Web have caused many people to ask, “Should I sell my house online?.” The advantages being easy accessibility to the company and a vast array of choice. However it is important to be happy with the company you choose. The need to sell a house quickly often leads to bad choices. Do your research and look for a company that will sell your house online professionally and takes your personal situation into consideration.

If 2007 was a less than perfect year financially, you might have welcomed in the New Year with open arms in the hope that your fortunes will change as 2008 progresses.  For those lucky enough to have had promotion at work or have moved to a higher salaried job there is every opportunity to become more financially stable.  The rest of us, however, will have to make do on the same, or a very similar, income and brace ourselves for the economic downturn that many forecasters are predicting.

One of the ways in which we have come to perceive wealth in this country is through the value of our home.  We ‘feel’ wealthy when we know that our home is worth a lot of money, even if we can’t realise the capital tied up in our property or are still paying off a large mortgage.  The question is whether a downturn in the housing market will alter that perception, affecting not only our attitudes but also our buying behaviour.  A slow down in credit card spending may be good for personal wealth management but would doubtless hit high street retailers where it hurts.

So how will property price stability or decline affect us personally?  Commentators expect the cooling down of the housing market to continue throughout the year; some feel that property prices will fall dramatically but the overall consensus seems to be a levelling off rather than a huge drop in values.  The greatest effect will be felt by those who have bought or re-mortgaged recently at the peak of the market, or who have a high level of consumer debt which they’re unable to repay.

The Council of Mortgage Lenders predict that the number of homes subject to repossessions will rise to 45,000 this year.  That’s against a backdrop of 17,000 in 2006 and 30,000 in 2007 (estimated on currently available figures).  The ‘feeling’ of wealth counts for nothing at all if you can’t sell your home when you are in a financial crisis – no matter how much it’s worth.  Whilst the current housing market slowdown is unlikely to have a dramatic effect on the majority of home owners, it will be particularly bad news for those who need to sell fast.  Buyers are rare commodities who are eagerly fought over by sellers; inflated property prices are no longer achievable and sale times are increased.  When facing the threat of repossession speed is of the essence if you are to avoid losing your home.  Property Rescue can help people in this situation even if it is the eleventh hour; they guarantee to make an offer on any property, regardless of condition or location, and will liaise with lenders to stop repossession in its tracks. 

The important thing is not to delay.  Call Property Rescue to see how their guaranteed offer for your home could stop the threat of repossession and help you look forward to a more financially stable 2008.

As we approach the end of the year it is a good time to look back at the property market during 2007 and look at the current situation.

The year began with what had become a familiar trend of rising prices, which, it seemed, would go on for ever.  But it was not long before some commentators and financial experts were warning of potential slowdown or even disaster in the months and years ahead.  The credit crunch in the US sent shivers through the economy, the effects of which are still with us today and likely to continue for a while yet, whilst bank interest rates rose and mortgages followed suit.  By mid year we were seeing a general slow down in property prices all across the country and in the final quarter of the year prices have begun to fall.

November saw a 1.1% drop according to the Halifax – the 3rd consecutive month of falling property prices.  The Bank of England lowered its interest rate by one quarter of a per cent at its meeting in early December but the effects of this rate cut seem to be limited.  Lending between banks has become very expensive and the Northern Rock crisis has done nothing to bring confidence back to the markets.

As if this weren’t enough, some commentators are predicting that the change in capital gains tax rules, due to come into force next April, will bring a lot of ‘buy to let’ properties back on to the market as investors seek to capitalise on their gains.  The net result of this could be a ‘buyers’ market where the number of homes for sale pushes prices down.  If this prediction is realised, those who took out mortgages during 2007 could find themselves in negative equity situations.

If you need to sell your home fast but can’t find a buyer you might, justifiably, be concerned about what will happen to the market in the months ahead.  For a guaranteed quick sale speak to Property Rescue, who will make an offer on your home within a matter of days, or in some cases just hours.  The price they offer will be a little below market value but it will include the legal fees on your sale, and will avoid the need to prepare a Home Information Pack, which could save you hundreds of pounds.

Property Rescue will be happy to talk to you in complete confidence and make a ‘no obligation’ offer on your property.  If you then decide not to proceed that will be the end of the matter – no salesmen will call, nor will you be pestered by phone calls.  Talk to Property Rescue and sell your property…fast!

This week the financial commentators have reported on several factors that are hitting the housing market via a lowering of buyer confidence.

• Property prices are slowing almost everywhere and in some areas of the country they are falling.  One of the few locations to buck the trend is the capital where estate agents report reasonable levels of sales against the backdrop of a buyers’ market where the price paid is not always the price at which the property was marketed.  The Royal Institute of Chartered Surveyors has reported a 22.2% increase in the number of its members that have seen a fall in the price of properties they have on their books.
• House prices might be going down but the rate of inflation isn’t, despite the Bank of England’s hold on interest rates last week.  The government failed to meet its target of 1.9% inflation during October, with figures coming in at 2.1%.  Inflationary pressure might just persuade the Bank of England to hold interest rates yet again when it meets later this month, rather than make the cut that the housing market has been hoping for.
• Energy prices are up, as anyone who has recently been to a petrol station will know!  Not so long ago the media – and the rest of us who drive cars or heat our homes with oil – were horrified to think of a barrel of crude pushing through the $50 barrier, but today it looks as if prices will soon reach a staggering $100 a barrel.
• Northern Rock has rocked the market, showing that even the largest financial institutions are at the mercy of global economics.  The sub-prime mortgage market in the US is still in some difficulty, leading to speculation that there may be more problems to come.

Trying to sell a home in this climate isn’t easy.  Attention must be paid to how your property is marketed and your home must be in tip top condition if it is going to attract the attention of buyers and ultimately achieve that longed for sale.  But Property Rescue guarantees to buy your house, regardless of its structural or decorative condition.  They complete sales in super-fast time leaving the seller free to benefit from the ever-growing number of properties on the market.  Although you won’t get the maximum sale price that might be achieved on the open market in ‘good times’, the price Property Rescue quote is what you’ll receive, without additional expenses or a deduction of fees.

The guarantee of a sale in the current property market must be worth a second look.  Give Property Rescue a call to find out more.  They will talk to you in total confidence and there will be no obligation to proceed.

This week figures have been announced that show the first drop in house prices for two years.  Is this the start of a real slow down and is the housing market in crisis?

Northern Rock’s recent difficulties have shaken the market considerably, showing what could happen if the sub-prime mortgage collapse in the US continues to have impact on our own lenders.  It’s not hard to find doom-mongers amongst the market commentators, predicting that we are about to see the biggest slow down since the ‘90s or even that we’re in for a full blown property price crash.

The International Monetary Fund considers UK property to be over-valued by 40%, which is enough to send shivers run down the spine of UK home owners.  Capital Economics, led by an ex chief economist from HSBC, forecasts a 3% fall per year during 2008 and 2009 due to the effects of the global economy and higher interest rates in this country.

Added to this is the effect that Home Information Packs (HIPS) are reportedly having on the market, with some potential sellers being put off from marketing their home until the full effect of HIPS becomes known.

This means that if you are trying to sell your house you’re likely to see a slow down in viewings and may have to drop from your asking price to gain that elusive sale.  For some people this is likely to cause real difficulties – losing the ‘dream home’ they really want, not being able to move to another part of the country thereby necessitating separate living arrangements for a period of time, or even taking out a bridging loan to cover the cost of two properties until such time as a sale can be made.

Property Rescue guarantee to buy your home no matter what the market is doing or what the commentators are forecasting.  Furthermore, the sale will be carried out in super-fast time, you won’t have to pay legal fees or estate agency fees on the property you sell, you won’t have to worry about HIPS as Property Rescue will take care of that for you, and you’ll be free to move on to your next home.

Give Property Rescue a call to find out more.  All calls are in total confidence and there will be no obligation on you to proceed if you then decide to sell your home via traditional routes.

Early October saw the publication of a survey that announced renting is now a cheaper option than buying!

The survey looked at rentals from private landlords during 2006 (i.e. not including local authority or housing association tenancies) and found that for an average two to three bedroom house the rental costs would work out to be less than the cost of a 100% mortgage.  This is the first time for many years that renting a property has been considered more financially advantageous than buying; in the past renting has always been seen as the more expensive option.

With the recent rapid increase in house prices, some areas having seen a three-fold rise since 1994, 100% mortgages (or close to 100%) have been put out of the reach of many on lower or even average earnings.  But during this same time period the costs of renting have remained quite stable, partly influenced by of the number of ‘buy to let’ properties that have come to the marketing through new investors keen to make money from the property boom. 

With property prices around five times the average first-time buyer’s income, it’s not difficult to see why rentals are enjoying a resurgence in popularity.  If you find yourself in a position where your mortgage is draining your finances, or you are in arrears with your lender, why not consider the option of selling your home and renting it back?  This solution allows you to remain in your home, but as a tenant rather than a homeowner, and enjoy all the rights that tenants normally have in privately rented properties. 

Talk to Property Rescue about how this scheme works.  All discussions are in strict confidence and you won’t be put under any obligation to proceed if you decide that sell and rent back isn’t for you.

There has been so much media speculation this year about a forthcoming UK property crash that you couldn’t be blamed for switching to a different channel every time a commentator comes on the box.

The Bank of England has, to date, failed to respond to pressure to cut rates and decided at its meeting on 4 October to keep interest rates unchanged at 5.75%.  For home owners, the rises that have taken place during 2007 have increased their mortgage repayments dramatically – a good reason, say some experts, to look at cutting interest rates before we reach economic meltdown and the market crashes. 

But is it just those with high mortgages that are feeling the pressure and will the market crash?  Obviously, the higher your loan the more impact the interest rate rises will have had.  But what tends to hit the media are stories about first time buyers on very stretched incomes or those who have taken out enormous loans, well out of the reach of most.  That leaves a vast gap in the middle consisting of the ‘average’ home-buyer, if there is such a thing.  These people have suffered in silence, absorbing the rate increases and making the necessary cut-backs.  If there were to be a crash – and the financial analysts are far from agreed as to whether that will happen, in any shape or form – anyone with a high mortgage could be left in a negative equity situation. 

Everyone has a breaking point in their budget, a fact that hasn’t escaped the notice of Property Rescue.  If you are facing a situation where you are continually building up debt secured against your home, you have arrears on your mortgage repayments, or are simply in an overstretched financial situation, give them a call to discuss the options.  Everything is done in complete confidence and there’s no obligation to proceed.

Stockbrokers the world over have had a scary ride over the past week or so.  The effects of events in the US have been felt around the globe and have sent jitters through the UK housing market in case what’s happened in America were to be replicated here.

Property lenders in the US have, it seems, been less than careful about the credit history of those to whom they grant loans.  Consequently when many of these people have defaulted on payments the loan companies have felt the effect.  The reason for the global ripple is that it is hard to identify where these loans are actually sourced because of the way in which loan companies borrow extensively from each other.

It might be difficult to relate what’s happening in the US to our own property market, but some commentators have questioned whether a similar cause and effect reaction could take place here.  Whatever happens, it now seems clear that although property prices remain on the up, the increase is slowing substantially.  Could the recent share market volatility lead to UK lenders being just that little bit more strict about ensuring they only lend to people who are the ‘least risk’?

If that were to be the case it would be all the more important to avoid having your home repossessed and incurring County Court Judgments through personal debt.  Property Rescue can eliminate the threat of repossession through its buy and rent back scheme, and can even help you deal with credit card debts at the same time.

If you are already someone who has a bad credit history you will know how much impact that can have on your life.  If your credit history is currently unblemished, then you would be well advised to do your utmost to keep it that way.  Property Rescue guarantee to buy your home and help solve your debt problems, no matter what has happened in the past.  Contact them for a free valuation and the opportunity to get rid of your debt and worry.  All calls are in strict confidence and with no obligation whatsoever.